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2.5 billion “black hole” in the social security system

13 November 2009 / 09:11:48  GRReporter
2580 reads

Victoria Mindova

Over €2.5 billion “black hole” in the social security system in Greece. The huge missing amount in the social security funds was the reason for a meeting between minister of labor Andreas Loverdos and minister of financed Georgios Papakonstantinou. In front of journalists the two ministers said that they are aware of the importance of the problem in the social security funds and together they will try to solve it. They did not say any particular plans of how they will do it.

Minister of finances Georgios Papakonstantinou said: “My colleague, the minister of labor and social politics Andreas Loverdos and I had a useful conversation in regards to solving problems, which affect both ministries and the destiny of the whole country – more precisely the problems with the social security funds. Together with minister Loverdos we made a decision to create a work group of experts in the field of financing and social security, who will propose a series of measures of how to get out of the current situation.”

According to Euro-commissioners, Greece needs an ambitious reform of the labor market, which will help cover the social security deficit. Brussels recommends to connect labor production with the payment level; to increase retirement age in men and in women; to decrease the number of employees in the state administration; and to limit bonuses given to high position employees.

Tags: Greek economy Budget deficit in Greece Economy news Social security in Greece
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